India: MFF - North Eastern State Roads Investment Program - Tranche 1

Sovereign Project | 37143-023


The project comprises (a) Investment Component - This comprises improvements of 197 km state roads in the States of Assam, Meghalaya and Sikkim, and associated consulting services for construction supervision; and (b) Project Management and Capacity Development Component - This comprises (i) assistance to the Ministry of Development of North Eastern Region (MDONER) and the public works departments (PWDs) in implementing the Investment Subprojects, and (ii) capacity development of the PWDs for improved road asset management.

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Project Name MFF - North Eastern State Roads Investment Program - Tranche 1
Project Number 37143-023
Country India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2770-IND: MFF - North Eastern State Roads Investment Program - Tranche 1
Ordinary capital resources US$ 74.80 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming Some gender elements
Description The project comprises (a) Investment Component - This comprises improvements of 197 km state roads in the States of Assam, Meghalaya and Sikkim, and associated consulting services for construction supervision; and (b) Project Management and Capacity Development Component - This comprises (i) assistance to the Ministry of Development of North Eastern Region (MDONER) and the public works departments (PWDs) in implementing the Investment Subprojects, and (ii) capacity development of the PWDs for improved road asset management.
Project Rationale and Linkage to Country/Regional Strategy

NER forms a distinct geographical unit, representing about 8% of the country's geographic area. It has a population of about 45 million (about 4% of the country's population). Approximately 98% of NER's borders are with other countries, Bangladesh, Bhutan, the People's Republic of China, Myanmar, and Nepal. Its connection with the rest of the country is only through a narrow land corridor. Except in Assam, NER has predominantly hilly to mountainous terrain and very high rainfall (among the highest in the world), which frequently results in landslides and floods.

Many factors have hampered the process of economic development in NER. Prior to independence, the only major economic activity was tea growing in some parts of present-day Assam. NER's transport connectivity to the rest of India has been limited to the narrow land corridor. Some states joined the planned development process later than other states of the country. Recognizing the need for accelerated development, the Government of India places special focus on the development of NER in its five-year plans, mainly through central funding of development activities in the region. Over the last two decades the government has required 10% of the budgets of central ministries and departments to be allocated for NER, and the creation of a non-lapsable central pool of resources for collecting the unspent allocated central funds for further assistance to the region. However, the recent growth performance of these states has not been encouraging, although some of the human development indicators (HDIs), such as the literacy rate, show remarkable progress. The government's Eleventh Five Year Plan, 2007-2012 states that "while development efforts over the years have made some impact (as reflected in some of the HDIs which are comparable with the rest of the country), the region is deficit in physical infrastructure which has a multiplier effect on economic development."

In 2001, the government created a dedicated ministry, MDONER, to coordinate and give impetus to the various central development efforts. MDONER responsibilities include dealing with matters relating to the planning, execution, and monitoring of development schemes and projects in the region including those for roads and administering the non-lapsable central pool of resources.

To further these development efforts and with renewed recognition that poor roads and bridges supporting the region's single most dominant transport mode of road transport are the major constraints on such effort, the government started a national investment program to improve road connectivity to remote places in the region. The Special Accelerated Road Development Program in the North Eastern Region (SARDP-NE) is to improve higher class roads including national highways and state roads in the region, and provide connectivity to the state capitals and district headquarters in NER by developing two-lane national highways and improving state roads.

Impact Improved surface transport connectivity in NER
Project Outcome
Description of Outcome Improved mobility and accessibility in the project areas
Progress Toward Outcome On track progress.
Implementation Progress
Description of Project Outputs

1. Reconstructed and rehabilitated state roads

2. Improved business process and staff skills

Status of Implementation Progress (Outputs, Activities, and Issues)

- Civil Works contracts in Assam, Sikkim and Meghalaya were awarded in 10 Dec 12, 17 Nov 12 and 12 Sep 13 respectively.

- CSC in Assam, Sikkim and Meghalaya were awarded on 8 Nov 12, 28 Feb 12 and 12 Jul 12 respectively.

- PMC contract was awarded on 3 Aug 12.

Completed in December 2014.

Geographical Location Assam, Meghalaya, and Sikkim states in the North Eastern region of India
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects

Project 1 is classified as environmental category B. Initial environmental examinations (IEEs) were prepared to address the impacts. Although the project roads pass through reserve forest, vegetation density along the project roads is moderate and not endangered. Therefore, the IEEs indicate no major adverse environmental impacts. However, the IEEs will be updated based on detailed design and prior to commencement of civil works; the environmental management plans will be included in the civil works contract. The investment program involves improvement and reconstruction of existing state highways and district roads on existing alignments and within available rights-of-way, with minor land acquisition.

The IEEs find that environmental impacts associated with the upgrading and improvement of the project roads will occur mainly during construction. However, since most of the roads are located in hilly areas, landslides could occur during construction and operation. The other important issue related to construction is the disposal of spoil materials from earth work. Contractors will need to be monitored to ensure that spoil materials are not disposed of in forested areas, nearby water bodies, agriculture land, and on the down-slope side of roads without adequate protection. These impacts are manageable and can be mitigated by implementing the mitigation measures recommended in the IEEs. The IEE confirms that none of the project roads are located in environmentally and ecologically sensitive areas. An environmental assessment and review framework was prepared for the investment program and subsequent tranches.

Involuntary Resettlement The investment program was developed with a view to minimize the need for land acquisition and involuntary resettlement. Where possible, construction activities will take place within the existing rights-of-way. Resettlement plans were prepared for the four roads in Project 1 to address land acquisition and resettlement impacts. A total of 1,453 households will be affected, out of which 275 will have a partial impact on their commercial structures, 802 will lose a portion of their residential structure, and 119 will have a partial impact on their residential-commercial structures; the rest would either lose a strip of agricultural land or open land. The displaced households will be entitled to compensation for the loss of land and structures at replacement cost, shifting cost, and other income restoration assistance. Resettlement for Project 1 is estimated to cost $4,475,937. In accordance with a resettlement framework prepared for the investment program, each state will prepare a resettlement plan for each subproject in subsequent tranches and submit it to ADB for approval.
Indigenous Peoples In NER, the scheduled tribe population constitutes 26.93% of the total population. Of the six project states, Meghalaya and Mizoram have scheduled tribe populations making up more than 85% of their respective population. In Assam and Sikkim, scheduled tribe populations make up less than 20%. More than 100 tribal groups reside in NER. In Meghalaya and Mizoram, the majority of the population is tribal, while in the remaining states the tribal population is not distinctive in the sense that they are inherently integrated with the modern and dominant population of the state. Tribal groups in the subproject areas freely interact and share their sources of water, folklore, food, infrastructure, and other belongings with the outside community. Moreover, these groups have nuclear families and are open to new ideas like family planning and formal education. Social impact assessments confirm that the socioeconomic impacts due to the subprojects will not be comparatively different for these people when compared with the remainder of the population. In addition, meaningful consultations, held in an atmosphere free of coercion, were conducted to ensure a comprehensive perspective on the proposed road improvement and its impacts; and to ascertain community members response, their needs and demands, an estimate of losses that they would suffer, and steps to mitigate those losses. Primary and secondary stakeholders consulted include directly affected people, executing agencies, implementing agencies, local administration officers, men, women, farmers, business communities, and disadvantaged groups residing along the corridor of influence. Combined indigenous peoples plans and resettlement plans were prepared for the road improvement under Project 1. Adequate compensation provisions are made to mitigate adverse impacts on indigenous peoples. An indigenous peoples planning framework was prepared for the investment program and for subsequent tranches. In accordance with the framework, if any significant impacts on indigenous people are identified in the subprojects in subsequent tranches, the relevant state will prepare an indigenous peoples plan and submit it to ADB for approval.
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholder participation and consultation was carried out during project design by the PPTA consultants during the preparation of the resettlement plans and the poverty and social assessment report. The details of the consultations carried out are there in the RPs.
During Project Implementation Stakeholder participation and consultation will be carried out by the RP implementation NGOs through out the implementation phase.
Business Opportunities
Consulting Services Recruitment of a construction supervision consultant for each of the three states and a project management consultant was completed by Q4 2012.
Procurement Each state has a civil works package and procurement by each state was completed by Q4 2012.
Responsible ADB Officer Chen Chen
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Ministry of Development of North Eastern RegionRoom no. 283-A
Vigyan Bhawan Annexe
Maulana Azad Road, New Delhi 110 011
Public Works Department State of AssamMUAHMED2006@YAHOO.CO.INState of Assam
Chandmari, Guwahati - 781003
Roads and Bridges DepartmentGTDHUNGEL@GMAIL.COMState of Sikkim
Nirman Bhawan, P.O. Gangtok
Public Works DepartmentPSGL_BAHDENG@YAHOO.CO.INState of Meghalaya
Lachumiere, Shillong - 793001
Concept Clearance 23 Nov 2005
Fact Finding 07 Jul 2006 to 19 Jul 2006
MRM 09 Jul 2010
Approval 22 Aug 2011
Last Review Mission -
PDS Creation Date 08 Jun 2010
Last PDS Update 31 Mar 2015

Loan 2770-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Aug 2011 09 Jul 2012 22 Oct 2012 31 Dec 2016 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 109.50 Cumulative Contract Awards
ADB 74.80 22 Aug 2011 51.51 0.00 69%
Counterpart 34.70 Cumulative Disbursements
Cofinancing 0.00 22 Aug 2011 5.83 0.00 8%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - -

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